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Business, 28.06.2021 16:00 AshtinDCardwell14

Your company plans to issue bonds later in the upcoming year. But with the economic uncertainty and varied interest rates, it is not clear how much money the company will receive when the bonds are issued. The company is committed to issuing 2,000 bonds, each of which will have a face value of $1,000, a stated interest rate of 10 percent paid annually, and a period to maturity of 10 years. Required:
a. Compute the bond issue proceeds assuming a market interest rate of 8 percent.
b. Compute the bond issue proceeds assuming a market interest rate of 11 percent.

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